Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

What they do to big houses


sarahbell

Recommended Posts

So many large, beautiful Victorian homes have been ruined by HMO Landlords - all the lovely old features ripped out for the same shitty furnishings. If the HMO market does go tits up, I'm not sure how they will sell them to anyone who wants to reconvert them back to family homes at anything other than massive discounts.

Link to comment
Share on other sites

On 21/01/2019 at 14:56, Durabo said:

So many large, beautiful Victorian homes have been ruined by HMO Landlords - all the lovely old features ripped out for the same shitty furnishings. If the HMO market does go tits up, I'm not sure how they will sell them to anyone who wants to reconvert them back to family homes at anything other than massive discounts.

not sure the council would want that happening,they would loose lots of council tax.

Link to comment
Share on other sites

1 minute ago, spunko said:

20k spent that could be lovely... all for less than 100k , crazy.

do you think so,what would you do to it.

Link to comment
Share on other sites

On 21/01/2019 at 14:53, sarahbell said:

https://www.rightmove.co.uk/property-for-sale/property-78614963.html

 

  • PLANNING FOR 3 DETACHED PLUS CONVERSION OF EXISTING DWELLING INTO 2

  • Can't think of anything worse than having a big house turned into two and then three houses squeezed into the front garden.

     

 

 

Blame the looser planning laws. Now a house with a garden isnt a house with a garden, its a house with a building plot. Have you noticed houses with gardens are now 100K plus more than they used to be.

Unfortunately farm land/ex council is sacresanct but your garden is fair game.

Link to comment
Share on other sites

4 hours ago, Green Devil said:

Blame the looser planning laws. Now a house with a garden isnt a house with a garden, its a house with a building plot. Have you noticed houses with gardens are now 100K plus more than they used to be.

Unfortunately farm land/ex council is sacresanct but your garden is fair game.

Not round here, they plan on building on greenspace 

Image may contain: text

Link to comment
Share on other sites

6 hours ago, stokiescum said:

do you think so,what would you do to it.

White gloss kitchen with subway tiles, bit of beige paint on the walls, grey carpets, word ornament spelling out L-O-V-E and an E-A-T one for the kitchen, a few twigs, sorted... O.o

In all seriousness it's got nice high ceilings and big sash windows, the outside looks nice (red brick). Shame you can't see the roof. I'd gut it and get a new solid oak staircase. Looks late Victorian so I'd probably get a nice old 1900s / Edwardian style door like this.

Edwardian-front-doors.jpg

Link to comment
Share on other sites

Where I am a number of 2/3 bedroom bungalows on large plots have been developed into 6 to 8 bedroom detached ‘houses’. One even stuck a ‘house’ at the end of the garden. This is a market response - the builders just work the street but you can’t blame them. Of course it does mean there are fewer and fewer bungalows.

 

Link to comment
Share on other sites

On 23/01/2019 at 14:36, spunko said:

White gloss kitchen with subway tiles, bit of beige paint on the walls, grey carpets, word ornament spelling out L-O-V-E and an E-A-T one for the kitchen, a few twigs, sorted... O.o

In all seriousness it's got nice high ceilings and big sash windows, the outside looks nice (red brick). Shame you can't see the roof. I'd gut it and get a new solid oak staircase. Looks late Victorian so I'd probably get a nice old 1900s / Edwardian style door like this.

Edwardian-front-doors.jpg

Always fancied getting a S - H - I - T for my bathroom wall.

Funnily enough, my wife wasn't too keen...

Link to comment
Share on other sites

VeryMeanReversion

I bought a 1300sqft 3-bed semi in 2010 because it had a big garden with an outbuilding of 600sqft that looked like a too-good-to-be-true development opportunity. I was glad to get out of renting for the previous 8 years. First job was to extend the house to 2300sqft involving a great deal of pain fighting the council planners but I learned a lot from the process.

Roll-on to 2018 and the new "local plan" allows the house to be converted to 3000sqft and the outbuilding to become a new dwelling up to 1750sqft gross internal area.  Creation of the local plan was done by the neighbours (~60 houses) and took about 2 years but has now been approved by the planning inspectorate so has legal force and applications are already being approved based on it. The council planners can't ignore it or get in the way of permitted development.

The outbuilding limit of 1750sqft (gross internal) is easy enough to work around by doing a barn style building with a large open centre, then putting an extra floor in later => 2100sqft total. Then permitted development laws can be used to add another 500-1000sqft one day without the need for planning permission.

The house and outbuilding will both have 1/3rd acre gardens so not exactly squashed in.  Current plan is to sign over the house to the kids so they won't have to pay landlords in future, then live in the new building.  No income tax or CGT (or IHT later) to pay on the new house if done this way.  Most of the VAT is also recoverable on a new dwelling.  My last loophole search is to find a way to minimise council tax by getting the lowest possible initial banding but I haven't found a good solution for that yet.

Based on previous projects I've done, it will cost me ~£240K to build the first 2100sqft but get something worth around £700K. I already have services and foundations done.   I wont care if the value of both houses drop dramatically in a crash as the family will have mortgage-free housing for the rest of their lives. No debt, no landlord, minimum tax is the aim.

I spend more time investigating planning procedures and loopholes than is healthy but my marginal tax rate is 70% via PAYE so there is little incentive to work any more. A SIPP provides the method for avoiding the 70% PAYE taxes and get the lump sum for the build cost.

Better than buying a house someone else has built for 700K with a big mortgage and end up paying back 1.4M including interest.

 

 

Link to comment
Share on other sites

VeryMeanReversion
1 minute ago, spunko said:

@VeryMeanReversion doesn't sound like you're in the UK from that tax rate - or are you? I assume you've looked into your employer paying you via dividends/contracting?

 

Standard UK PAYE marginal deductions at £50K with two kids. 

Income tax - 40%

NI employee - 2%

NI employer - 12.8%

Child benefit withdrawal = 17% (50K-60K range). Higher % if you have more than 2 kids.

I include the NI in my marginal rate calculation since I can keep both NI amounts using a salary sacrifice scheme. It is effectively salary that is taken before it even appears as your gross figure. Nice trick that one, mr Government.

Very few people on the forums I frequent have worked this out although it isn't that hard. Understanding how NI works is the key. The politicians know this so keep banging on about income tax coming down rather than the two national insurance rates going up. This graph is a bit old but here it is anyway....

image.png.31efd6d75c3c737f07c2290577816042.png

I have recently arranged with my employer to keep my salary down and get equivalent (risk-adjusted) EMI options instead.  The options may or may not be worth anything but are taxed at only 10% if I keep them for 2 years. Other than the initial legal work, there is no additional cost to the company.  Later, I can either exercise+sell (+10%) or exercise some of it to receive divis up to the tax-free amount.

Link to comment
Share on other sites

3 hours ago, VeryMeanReversion said:

Standard UK PAYE marginal deductions at £50K with two kids. 

Income tax - 40%

NI employee - 2%

NI employer - 12.8%

Child benefit withdrawal = 17% (50K-60K range). Higher % if you have more than 2 kids.

I include the NI in my marginal rate calculation since I can keep both NI amounts using a salary sacrifice scheme. It is effectively salary that is taken before it even appears as your gross figure. Nice trick that one, mr Government.

Very few people on the forums I frequent have worked this out although it isn't that hard. Understanding how NI works is the key. The politicians know this so keep banging on about income tax coming down rather than the two national insurance rates going up. This graph is a bit old but here it is anyway....

image.png.31efd6d75c3c737f07c2290577816042.png

I have recently arranged with my employer to keep my salary down and get equivalent (risk-adjusted) EMI options instead.  The options may or may not be worth anything but are taxed at only 10% if I keep them for 2 years. Other than the initial legal work, there is no additional cost to the company.  Later, I can either exercise+sell (+10%) or exercise some of it to receive divis up to the tax-free amount.

Interesting, even worse with student loan repayments - would make marginal tax rate nearer to 80%?

I looked at take home pay calculator say 49,999 vs 60,001 if you have 2 children and repayment plan 1.
At £49,999 take home is £34,168.69.
At £60,001 take home is £39,069.67 but you lose child benefit so -£1788.80 =£37,280.87
For ~10k extra pre tax pay you keep only 3112.18, approx 69% marginal tax rate.
Not included the employer NI in that calculation.

Shocking really as it is not that much money if you live in the SE where rent or buying a house cost huge amount and 50 to 60k will probably be where you get a much higher level of stress in the job.

Link to comment
Share on other sites

VeryMeanReversion
1 hour ago, maudit said:

Interesting, even worse with student loan repayments - would make marginal tax rate nearer to 80%?

I looked at take home pay calculator say 49,999 vs 60,001 if you have 2 children and repayment plan 1.
At £49,999 take home is £34,168.69.
At £60,001 take home is £39,069.67 but you lose child benefit so -£1788.80 =£37,280.87
For ~10k extra pre tax pay you keep only 3112.18, approx 69% marginal tax rate.
Not included the employer NI in that calculation.

Shocking really as it is not that much money if you live in the SE where rent or buying a house cost huge amount and 50 to 60k will probably be where you get a much higher level of stress in the job.

Yep, student debt make it even worse. As does the CSA (up to 19% of gross) for child maintenance.

This is the best graph I have for marginal tax rate of income + employee NIC but this doesn't include the employee NI which adds another 13.8% for most of the salary range. I wonder if someone actually designed this and thought it was a good idea.
 

image.png.e821ba85a413fb8005eca25a5244a70c.png

 

If you have 5 kids and a student loan, you can get to >100% marginal rate.  

(Note: It looks like my earlier figures are a bit out of date. Employer NICs is now 13.8% and child benefit withdrawal is 17.8% fortwo kids so even worse than I said)

However, the good news is that if you don't like work and have investments, you can get away with zero income tax and NICs. i.e.

1. Normal Income - 12K tax-free per person (better if from pension since no NI either)

2. Savings interest - 1K tax-free per person

3. Dividends - 2K tax-free per person

4. ISA income - All tax-free 

5. Rent-a-room income - £7500 tax-free per house

6. VCT dividends - don't know much about this and don't trust the VC's I've come across so wont be doing it.

 

As far as I can see, the tax-system rewards minimum work and living off others. Funny how the government came up with that idea....

 

 

 

 

 

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...